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China Petroleum & Chemical (SNP) Upgraded to Strong Buy

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On Aug 18, 2016, Zacks Investment Research upgraded China Petroleum & Chemical Corp. to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of significantly outperforming the broader market over the next few quarters.

Why the Upgrade?

China Petroleum and Chemical Corporation (SNP or Sinopec), with its head office in Beijing, China, is one of the largest petroleum and petrochemical companies in Asia. The company is the second largest crude oil and natural gas producer, and the largest refiner and marketer of refined petroleum products in China. The company is also the largest producer and distributor of petrochemicals in the nation.

The impressive economic growth in China has significantly increased its demand for oil, natural gas and chemicals. This, in turn, has presented attractive opportunities for industry players like Sinopec that can meet the country’s fast-growing energy needs.

 

CHINA PETRO&CHM Price and Consensus

CHINA PETRO&CHM Price and Consensus | CHINA PETRO&CHM Quote

In particular, Sinopec’s leverage to the lucrative Chinese market is expected to help sustain its impressive momentum, while jump in China’s middle class and in automobile ownership is expected to fuel consumption of refined petroleum products.

Moreover, the company’s major progress in liquefied natural gas projects; construction of long-distance oil and gas pipeline projects, and overseas projects is likely to assist Sinopec in increasing value for shareholders as well enhance operating income in its exploration & production segment.

 Other Stocks to Consider

Other similarly-ranked stocks from the broader energy sector include Devon Energy Corporation (DVN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Parsley Energy, Inc. .

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